Key issues: 

Personal loan | Loan application | Lease application | Medium amount contract | Consumer lease | Interest rate cap


I find that:

    • the transaction entered into by the parties on 6 June 2014 is properly characterised as a loan rather than a lease, meaning

    • the statutory interest rate cap of 48% pa. should apply, as a result of which
    • the FSP should refund to the consumer the sum of $993.64, being the amount paid in excess of the statutory cap together with interest on that amount.

This Determination affirms the position set out in our Recommendation dated 13 January 2017 (the Recommendation). I do not propose to restate that analysis but instead adopt it for the purposes of this Determination. A copy of the Recommendation is attached.

Follow this link for a full copy in PDF >> Determination | 3 April 2017